Saab says it has signed a Memorandum of Understanding with Jinhua Youngman which will see the Chinese car maker invest £215 million in a Manufacturing Joint Venture (MJV) with the Swedes.
The new company is expected to build the new-generation 9-3 range in China from late next year, as well as using Saab technology to create a new domestic Chinese brand. Youngman already builds its own-brand cars and makes MAN commercial vehicles under licence. It is also the biggest bus builder in China.
The deal comes just weeks after Saab signed a Distribution Joint Venture (DJV) with Pang Da, one of China’s largest distributor and dealer networks.
According to Saab, the MJV ownership will be split 45/45/10 between Saab, Youngman and Pang Da. The DJV will be split 34/33/33 between Pang Da, Saab and Youngman.
Youngman will also be buying 29 per cent of Saab’s parent company Spyker and can nominate two board members to the Spyker board.